Primerica. Life insurance Exam Questions With Verified Answers
7 views 0 purchase
Course
Primerica Life Insurance
Institution
Primerica Life Insurance
Primerica. Life insurance Exam Questions
With Verified Answers
401(k) plan - answerA qualified retirement plan in which the employee can set aside a
portion of their income with pre-tax dollars.
Absolute Assignment v. Collateral Assignment - answerAbsolute: A permanent and
irrevocable transfer...
Primerica. Life insurance Exam Questions With Verified Answers 401(k) plan - answer✔✔A qualified retirement plan in which the employee can set aside a portion of their income with pre -tax dollars. Absolute Assignment v. Collateral Assignment - answer✔✔Absolute: A permanent and irrevocable transfer of rights and/or ben efits by the policyowner. Collateral: A temporary and/or revocable transfer of benefits by the policyowner. Accelerated Death Benefit - answer✔✔Policy provision that allows full or partial payment of the policy's death benefit before the insured's death i f he/she is terminally ill. Accidental Death Benefit - answer✔✔An extra cost rider that requires the insurance company to pay an additional benefit in the event that the insured dies within 90 days of an accident as a direct result of the accident. Accumul ate at Interest - answer✔✔The Dividend Option where the policyowner leaves the dividends with the insurer to invest and earn interest. Adhesion - answer✔✔Since the insurer created all the documents of the contract, any ambiguities in the contract will be s ettled in favor of the insured. Since the insurer wrote the contract they are stuck with it. Adverse Selection - answer✔✔The tendency for less favorable risks to seek or continue insurance to a greater extent than more favorable risks. Agency Agreement or Agency Contract - answer✔✔A legal document containing the terms of the agreement between the agent and the insurance company. It clearly defines what an agent can and cannot do, and how he/she will be compensated. Agent Authorities - answer✔✔Expressed: Pow er or authority specifically granted in writing to an agent by the insurance company in their Agency Agreement. Apparent: Power or authority that the public reasonably assumes an agent has based upon his/her actions. Implied: Power or authority that is not expressly granted by the company but that an agent can assume or that are implied he/she has in order to transact insurance business. Agent/Producer - answer✔✔Anyone who sells or aids in the selling of insurance. Legally represents the company. Agent' s Report - answer✔✔A written report from the agent submitted to the insurer along with the application disclosing what the agent knows, observed, or learned about the proposed insured's risks. Aleatory - answer✔✔Unequal exchange of value. One party may obt ain a far greater value than the other under the contract. Annual Renewable Term - answer✔✔A Term Life Insurance contract which gives the policyowner the option to renew the policy each year without showing proof of insurability. Premiums increase at each renewal. Annuitant - answer✔✔The person that buys an annuity; may or may not be an annuity's policyowner. Annuity - answer✔✔A contract/policy that guarantees to pay income for a specified period of time or for the life of the annuitant. Designed to prevent people from outliving their savings. Appointment - answer✔✔Authorization of an agent/producer by an insurer to represent the company. Blackout Period - answer✔✔The period of time between the youngest child turning 16 and the widow(er) reaching retirement age during which no Social Security Survivor Benefits are paid to the surviving spouse. Buy-Sell Agreement - answer✔✔Business use of Li fe Insurance where partners in a business buy life insurance on each other. They agree that when one of them dies the survivors have the right to purchase the deceased partner's share of the business. The death benefit from the insurance is used to finance the purchase. Cash Nonforfeiture Option - answer✔✔Policyowner receives a lump -sum payment of the current cash value of the policy upon surrender of the policy. The policy cannot be reinstated. Cash Settlement Option - answer✔✔Upon maturity of an insurance policy the beneficiary receives a lump -sum payment of the entire policy proceeds due.
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller Brainbarter. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $12.49. You're not tied to anything after your purchase.
